Under the default tax regime, house rent allowance is

1. The treatment of an allowance depends on which regime applies. 2. In the computation under the default regime, house rent allowance is shown as fully taxable. 3. Nothing is deducted from it before it enters gross salary. 4. The exemptions that once applied to HRA sit in the optional regime instead. _Source: ICAI Income Tax Law, Ch3 'Heads of Income', Unit 1 'Salaries', section 1.4_